// glossary entry

Customer Segmentation

What is customer segmentation?

Customer segmentation is the process of dividing the customer base into groups with comparable characteristics, industry, size, purchase frequency, needs, region, or lifecycle stage. Each segment receives tailored messages, channels, and offers. Effective segmentation increases relevance and reduces wasted reach. At Waterproof Web Wizard, we recommend that SMEs focus on a few well-maintained segments based on real data rather than theoretically elegant models that no one actually populates in day-to-day CRM operations. Three to five segments are often a pragmatic starting point.

// synonyms

  • Customer Segmentation
  • Target Audience Segmentation
  • Market Segmentation
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